Infrastructure companies have generally been an island of stability during the financial crisis, policymakers, regulators and markets are now focusing on their critical role in ensuring not only the efficiency, but the stability of financial markets. A proper understanding of the role of these companies has become a must for financial practitioners. This course will review thoroughly the activities and competitive environment of the key financial market infrastructures, as well as the regulatory context in which they operate and its impact on financial markets, in particular in the EU and the US.
The trading module examines in detail at the history and the role of both equity and derivative exchanges. We will examine the major trends shaping the future of exchanges including competition & globalization, demutualization & consolidation, technology and regulation and describe their impact on exchanges and financial markets. The module will explain the different trading models of exchanges and in particular how exchanges attract liquidity as well as their impact on market quality, institutional order flows. A particular chapter will also look at listings, IPOs and the exchange environment from the issuers’ perspective. It will detail the breadth new services being offered by exchanges. It will also review and compare market surveillance mechanisms and relevant regulations in Europe (such as MiFID, EMIR, MAD) and in the US (such as Reg NMS, Dodd-Franck). Finally, it will examine current market trends, such as high frequency trading, and analyses recent market events such as the Flash Crash.